Basis of accounting
The separate Accounts of the Company are presented as required by the Companies Act 2006. They have been prepared under the historical cost convention and in accordance with applicable United Kingdom Accounting Standards (UK GAAP).
The principal accounting policies are summarised below. They have all been applied consistently throughout the current and preceding year.
The Company has taken the exemption from FRS 29 "Financial Instruments: Disclosures" provided for a parent company's single-entity financial statements.
The accounting policy for share-based payments (FRS 20) is consistent with that of the Group as detailed in the Statement of Significant Accounting Policies.
The accounting policy for financial instruments is consistent with that of the Group as detailed in the Statement of Significant Accounting Policies.
Financial assets and liabilities
The accounting policy for financial assets and liabilities is consistent with that of the Group as detailed in the Statement of Significant Accounting Policies.
Fixed asset investments in subsidiaries are shown at cost less provision for impairment.
Tangible fixed assets
The accounting policy for tangible fixed assets is consistent with that of the Group as detailed in the Statement of Significant Accounting Policies.
Transactions denominated in foreign currencies are recorded in the local currency at actual exchange rates as of the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the year end are reported at the rates of exchange prevailing at the year end. Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included as an exchange gain or loss in the Profit and Loss Account.
Dividends proposed by the Board of Directors that have not been paid by the end of the year are not recognised in the Accounts until they have been approved by the Shareholders at the Annual General Meeting.
Related party transactions
The Company has taken advantage of the exemption in FRS 8 "Related Party Disclosures" not to disclose transactions with other members of the Group 100% owned by SIG plc, either directly or indirectly.
Implementation of financial reporting standard 100 ("frs 100")
With effect from 1 January 2015 the Company will be required to apply FRS 100 for the first time. It is currently the intention of the Company to prepare its accounts in accordance with the requirements of FRS 101, as permitted by paragraph 46 of FRS 101. This will result in the application of the accounting recognition and measurement criteria of EU-adopted International Financial Reporting Standards ("IFRS"), consistent with the policies adopted in the Consolidated Group Accounts, set out in the Statement of Significant Accounting Policies.
FRS 101 permits certain disclosure exemptions from full EU-adopted IFRS, principally in relation to share-based payments, business combinations, assets held for sale, financial instruments, fair value, impairment and related parties. The full list of available exemptions can be viewed at www.frc.org.uk.
Full disclosure of the Group's activities will be made in the Consolidated Accounts which will continue to be prepared in accordance with full EU-adopted IFRS. The adoption of FRS 100/101 is not expected to have any impact on the presentation of the Company's Accounts. Any objections to the adoption of FRS 100/101 should be made in writing to the Company Secretary at the Company's registered address as set out in Company Information.